Vita-Galilee Fruit (Vita-Pri Galil) (TASE: VITA) chairman Avraham Burg is forming an investor group to acquire 10-20% of the company, sources inform "Globes". Burg's action follows the sale of control in Vita-Pri Galil to British investor Ian Nigel Davis, which closed today.
Davis, the controlling shareholder in 3i (Investment In Industry) group together with partner Aviv Algor, yesterday purchased control of Vita-Pri Galil from Zeev Mozes. Davis made acquisition without Algor for tax purposes, as Davis is a foreign citizen. During the past year, the shares in Vita-Pri Galil had been held in trust until an NIS 18 million loan granted by Davis and Algor was repaid.
Vita-Pri Galil's market cap was NIS 18.8 million this morning, but the deal was transacted at NIS 55 million value. Sales for the first nine months of 2005 were NIS 184.2 million, with a loss of NIS 8.3 million. After the company made its announcement this morning, the share shot up by 50%.
3i's owners now hold 40% of Vita-Pri Galil, with the most recent transaction being a 12% block of shares. Davis and Algor now own 77.9% of the company; 3i owns 18.63%, Davis owns 44.3% or 50.3% fully diluted, and Algor owns 14.97%. In practice, the two men -- who are also relatives -- are joint partners in the company.
Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, January 26, 2006